Bitcoin (BTC) could exist forming a then-called "double top" pattern afterwards falling by over 30% from its record high of $69,000, suggests Peter Brandt, a veteran trader known for correctly calling the crypto market height in December 2022.

The Gene LLC CEO recalled Bitcoin'due south inability to extend its cost rally above its previous all-time high near $65,000 after a second try. Meanwhile, he illustrated an firsthand support level for the BTC price at a then-called neckline nearly $30,000 while alerting most further declines below this cardinal level.

BTC/USD weekly price nautical chart featuring double top pattern. Source: TradingView, Peter Brandt

Is a fifty% Bitcoin price crash realistic?

In particular, traditional chartists perceive the formation of two sequent tops, each leading to a potent toll retracement to the downside, equally a sign of bearish reversal. The downside target in a double superlative scenario comes to be approximately as deep as the acme of the pattern'southward formation.

Merely the double top downside target is somewhat unrealistic here considering confirmation of the design would suggest a nearly $35,000 decline in Bitcoin price. Pregnant, BTC toll would be at chance of crashing below $0 in a perfect world, a scenario which is highly unlikely.

Nonetheless, should the price break bearish below the neckline of $thirty,000, Bitcoin's ultimate downside target may turn out to be the 200-week exponential moving boilerplate (200-week EMA; the orange moving ridge in the chart below), currently about l% below the current price levels, near $23,500.

BTC/USD daily toll chart featuring 200-week EMA support. Source: TradingView

The 200-week EMA has been instrumental in calling out the bottoms in a bear market, every bit shown by the upward-pointing arrows in the chart above. Notwithstanding, Brandt reminded:

"A chart pattern is NOT NOT NOT a nautical chart pattern until it is completed and confirmed. Until that time it is only of passing interest to me."

Merely another BTC price dip?

Ignoring the potential bearish outlooks, Bitpanda's master product officeholder Lukas Enzersdorfer-Konrad asserted that Bitcoin'due south toll turn down from $69,000 to $42,000 is like to its May 2022 price crash, wherein information technology plunged past over fifty%, only to pare all those losses and striking a new record high afterward.

"Similarly to the recent driblet, overleveraged positions increased volatility and wiped abroad most of the long positions," Enzersdorfer-Konrad told Cointelegraph in a statement via email equally he referred to the $2.5 billion worth of liquidation in a matter of hours on Dec. iv, which caused around 20% intraday correction in virtually liquid crypto avails.

The analyst added:

"The Bitcoin market needs some time to recover in these situations, and intraday charts are yet volatile, but it is nonetheless bullish on the higher time frame."

Related: Bitcoin tumbles below $47K wiping out October gains — Deport market begins?

From a bullish technicals standpoint, one popular contained market analyst known past the pseudonym "Wolf," presented Bitcoin as an oversold asset based on its relative forcefulness index (RSI) readings on a daily-timeframe chart.

BTC/USD daily price chart featuring RSI bounce. Source: TradingView, @IamCryptoWolf

Wolf anticipated the BTC price to test $51,780 equally its side by side resistance level, with an extended upside target at near $threescore,000.

The views and opinions expressed hither are solely those of the author and do non necessarily reflect the views of Cointelegraph.com. Every investment and trading motion involves risk, you should conduct your own research when making a decision.